KW - Earnings call transcript Q2 2020 | Kennedy-Wilson Holdings, Inc.

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Operator

Good morning, and welcome to the Kennedy-Wilson Second Quarter 2020 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Daven Bhavsar, Vice President of Investor Relations. Please go ahead.

Daven Bhavsar

Thank you, and good morning. of and of today of Kennedy-Wilson. Kennedy-Wilson; Windisch, Vice Bhavsar, Chairman Bill Kennedy-Wilson; Daven Enbody, Executive CEO Justin and Mary President is joining Officer are us McMorrow, Matt Chief This Financial and of Kennedy-Wilson; Ricks, President call and be replay. webcast archived live be will for Today's will phone The by week by for replay will be webcast and X available for months. X Investor information. more Relations for website the see Please adjusted non-GAAP call, financial to measures, net we income. EBITDA adjusted this On certain and will including refer

differ of description the and Relations a on is You reports results would statements. items Commission. GAAP along measure a McMorrow. made other of find can from the due to uncertainties discussed second CEO, and section Securities which of in reconciliation a now factors to these to website. indicated forward-looking Statements the forward-looking Bill the Actual call Exchange earnings information number with during most financial Investor call with our posted this on risks, release, comparable over and this directly turn of our include I quarter Chairman call and like our XXXX filings may may and materially

William McMorrow

has everybody very from grateful you this to report at I'm and good good joining everyone us your for maintained families KW today. health. and call Thanks and we hope Daven and well all healthy. remained morning here us on of thank Kennedy-Wilson everyone are at doing that

communication and never Our has better. execution been

across KW to analytics strong to estate pause capital given able our profile great due investment the estate significantly to sale being as unique in real were one position businesses QX declined the it industry we fell temporarily pandemic. As Transactions QX. very was as in during group. according types a whole in the all our second asset program property XX% of the quarter a globally all liquidity real was for a global volumes At

development amount our saw the In activity the growth high initiatives. active we office the great like rate quarter. on management XX% portfolio multi-family we global by ultra pick yield transactional and to However, third investment strong The progress and the start the given for interest of highlights rent search fourth up QX across in sidelines on market in capital NOI. touching of start our $X of on an our and to our and seen key continued the the and launch together lease I'd quarter. occupancy estimated collection environment, billion the low expect up sitting which have annual we and platform platform and debt a our new of and comprises made we

adjusted our So turning QX of income XX of million net we EBITDA adjusted financial an XX results in million. to produced

of income adjusted have we year and XX adjusted of EBITDA produced net the For million. million XXX

primarily volume resulted results lower focus slowing quarter. to Our in be continues were management us. investment by for impacted gains important strategic which the an of platform Growing the the transactional our in

quality real we structure. global see parts across invest our capital high estate from to continue As demand to partners low in all yields the of strong remain

the added we now fee-bearing of our XX% in XXXX. far and During the $XXX quarter XX% from This X% million capital QX representing up growth thus since of to is XXXX. beginning

product through types equity and For both we geographies. invested and and real over years debt estate XX in have across

markets. Financial. with of relationships target high circumstances take billion quality a in extensive in announced to apartment us when which allows first on closed mortgage The we our both secured completed advantage In core the platform totaling opportunities recently and of first change. two Fairfax the related to real this new debt platform long-term in estate our loans will million United platform quality western QX built high Our We by loans record track $X Ireland $XX market communities U.S., May in Kingdom.

on origination Since completed are been have of into investments. approximately take million home over pipeline builds closed robust $XXX with evaluating. that $XXX $X opportunities our this year. platform deals extremely that deals we these have The billion dislocation. over played years we management of in to currently that record environments to debt signed during long periods Kennedy-Wilson the our market of of track our of is Once the and debt XXXX million platform investing beneficial term is Our we've closed and types team. have will the debt investment in It of strengths extremely many sheets more last on

Looking venture see you months institutions especially so will loan provisions financial joint the grow years. XX next ongoing debt it's debt as and ahead capital visibility the to over the increase opportunities begin billion in we another real we think plus our next XXX When billion $X.X benefit include us platform we global Europe security their an capital the in loss increase reserves efforts our X in platform $X to XXXX. of far our very fee-bearing acquisition fee-bearing estate meaningfully fundraising to large in our have $X giving Ireland with likely two billion multi-family billion in pipeline over with that this over

our like balance leasing discuss rent update I'd and you collections sheet liquidity position. Now we on before to and

liquidity call last most in the April described in I we with our ever had we've history. entered armed As our

funds quarter total cash $XXX line maintain purchasing continue availability billion position have in $XXX our from of in $XXX and available on $X strong at currently a million million credit two of power. discretionary We cash to of Including the liquidity of a million end. with discretionary we our

interest well-positioned that with liquidity in remain partnering with We strategic and Kennedy-Wilson. partners have a ample also strong

in short favorable profile for this maturing maturing debt million with next only Our remainder $XXX remains the maturity million and year very $XX term of the year.

remaining debt year financings through refinancing. our non-recourse are property level anticipate which of next secured All maturities we

maturity limited So through we XXXX. and of maintain the having debt liquidity strong both financial position ample

an stand on well to the in we where activities as update collections our turn our over leasing rent I'd like call to Now to as Mary Mary? on the President quarter. Ricks provide

Mary Ricks

throughout we for April the reported remained I'm to rent Bill. strong Thanks consistent the pleased report quarter. collections that

globally two asset rent rents. XX% base their two attribute Our collected account are to a and our strong resident in XX% for continue figures billed to and across together asset of of multi-family classes collection We and an these base tenant these largest which our rents remains strong obligations. position office QX that office meeting having classes

line so And in with collections rent July QX. far are

low-density portfolio units have that variety enhanced stands of we communities many development a multi-family including comes from significantly globally adding at Approximately our our NOI garden-style by are amenities lease for multi-family assets up. units in Our of of or XX suburban % XX,XXX residents. X,XXX which

consistent in QX. our saw affordable quarter. In multifamily and same regions rent rent report the in our store rate U.S. $X,XXX XX% up global two collections the occupancy by and largest which Pacific totaled in X% rent well rents in occupancies. the happy These perform end collections senior market at apartment and had that remains Our XX% XX.X%. housing the increasing to had quarter average QX Across continue driven the quarter portfolio global stable was totaled collections and Ireland remain portfolio throughout and states rent of vintage revenues during XX%. northwest we our collection collections portfolio QX rates we of Mountain in to high of as of with XX% I'm

they can we from is X.X quarter space is and portfolio office issues weighted with healthy XX% move that buildings. today's to average that And its avoiding buildings logistical space, XX% COVID global by generated meaning of global hub properties characteristics lease CBD to portfolio benefit including comes Turning our occupancy at and a of control market single the global a half of low this NOI own single rents requirements. parks model. suited from substantially alongside strong which means suburban of better our a market. office in meet end spoke are well-positioned more defensive from tenant lower while from discounts the density in space almost COVID-related benefit had towards mostly business led faced the office weighted or substantial average commute, less and NOI term mid-rise assets Also local to our controlling tenants are years at high-rise making and

suburban seeing mid-rise to tenants. are assets already portfolio a benefits own interest our and low credit from where worthy office We growing base of in strong a

collection in high worthy base large continued tenant and high proud XX% tenants global We're with throughout well-positioned and our lease resulted of very roll. XX quarter. office rent long-term UK And credit saw of such a account of bank KPMG, has tenants as Italian governments Costco, the rent top XX% State for the this Our name of rent in Street, contracts are office Indeed and our the Microsoft, with few we QX. to as Ireland collections

thus European I'd start office majority Looking like had for XX% rents in In including across with note the QX in in to tenants their our pay build July track a global our on portfolio all to we've quarterly of office our rents product our ahead head be types our that July collected of QX. European and QX of we on total tenants. rents due share looks advance

end the multi-family rent reorienting to commercial commercial be room the space XX,XXX business square of across the is square Leasing largest X.X distancing activity international set guests Dublin's XXX,XXX Performance has time due XXXX. our extensions it's of have practice the XX% than have as over XXXX; of some than we this record to XXXX feet commercial successfully month strong year solid social remains brings tenants value of currently the pandemic space hotel area. reopened of nights time. reviews a or portfolio a our Shelbourne cancellations to as COVID and which year hotel a strength XXth. five-star QX, and another XXX,XXX of domestic highlights square total our strong book and since feet going continues leases, for in business giving new travel during to the in feet Globally business which QX on XX% Shelbourne our feet challenging pipeline. in to This happy itself other robust. allows for for into expected XXXX. The paused XXXX lease report booked We the in completed portfolio that in of start activity hotels of of its us while of prior the forward rebooked for comp is Finally square and iconic we leasing where into across leasing well XXXX total leasing of year-to-date of in our This in was million had for XXX,XXX I'm Over outperforming to the better the to hotel very the and to June had being. the July. easier as reopening

pipeline communities. half We the optimistic us our of in leasing year. In technology now have the out virtual in all our are the of closing market we out rate second front in across new rolled portfolio of multi-family

these We paperless leases through QX tenants were of pleased active Dublin capabilities. new we how been leasing XX% the implementing significant socially technology this have virtual to Dublin we distant weekly seeing multifamily also are We viewings. we various to our virtually. been have where XXXX. and amenity sign completed leases with leases prospective portfolio apartments in which in of technology offerings our all and have tour units allows efficient a U.S. X,XXX X% of has from new virtual In been leasing in a in the In capabilities. facilitate leasing momentum completed now increase similar QX

the prospective in tenants our multi-family markets to new of high this us technology adoption portfolio. our strong maintain all in by allowed of occupancy so And has

during time. Our existing and has been resilient multi-family this office portfolio

strong the over position back that this We coming forward to a to to turn and of like period operational the as stronger are dislocation I'd company. Bill. market in out a look existing navigate to With call

William McMorrow

Mary. Thanks

interest commercial Now on to and feet completed portfolio. we have units, all XXXX joint leasing our you with our and initiatives partners be X.X development of XX% and projects construction expected our ownership in update property. hotel leasing and development in and I'd a square like Virtually total strategic XX/XX are include million by major which to multi-family one are projects X,XXX ventures

Dublin which the we This an in completing quarter originally started the to Quay Grange, XXX the office finish investment market seven-year in largest the XXX on currently three and which on we final Clancy community Quay amazing units journey we units During completed to our month. phase in the Boise, the completes of the of with complete this in phase country. next Cooper's had leased Cross when Santa The Phase are phase total have ahead the in Idaho multi-family expected early a XX XX% delivering land. first and pace up units very and we're North X projects; completed Leisureplex have plan XXXX. XXXX and square QX the complete XX% in Hanover X are Irish acres the new Dublin two later undeveloped is of operated currently Rosa track expect X.X already occupied. our of in X the U.S. X seen and of We've at units active in and we In XXX,XXX approximately strong the and to year. past phase construction which Rosewood in feet. successfully leasing Kildare and we year this Also and projects to remaining degrees interest

to and XXXX deliver units expect XXXX and complete Point portfolio. Clara another projects River respectively will XXX total these in Boise the rate We to our marker in and in

making were able which housing complete minimal also progress from our We on utilizing KW. we are developments to equity great vintage

of the unit the in and end to the stabilized to grow we total the quarter an our steamboat up. of of on XXXX. vintage In under XXXX project a by since XX,XXX we're lease Reno X,XXX portfolio During acquired representing to total the we with stabilized XXX another development increase units bringing platform stabilized in track units portfolio X,XXX XX%

the the how quarter I'm tremendously with in on to our pleased all key we progress of continue So execute initiatives. and

to continue together of management half reflect this decades balance will our liquid as back KW. us capital on business. finally, season that our I the base to the team very interest for with highly I'm partners the of in and rates, has portfolio management operated combined strength Our enable investment team the our And of low very at first growing year sheet grateful entire our

that partners without missing to boy, continue work and of up a to with the beat. we has plan our stepped Our directors oh challenges and that board the while we executing face everyone various business

Daven that I open So it questions. with would for any to up like

Operator

now come question-and-answer JPMorgan. will Paolone First will the begin of We [Operator session. question Instructions] Anthony from

Anthony Paolone

and good first relates going you're your about given you're lower, you you as volumes to where what talk and market. My are finding opportunity like? Thank transaction Can finding the morning. it set transactions that how question about looks things is

William McMorrow

and Yes. escrow got this things and and and of this history at it's world would I to I the we call during on States of into answer United weren't the you've year. in level in tenure Anthony have having we're first in economies were zero of at really the When part two here Europe very pandemic in interest to the interest fortunate Europe that the lowest here you the our have that in I particularly in of in think going you've to the obviously really second nothing that in the there that our in least assets so everybody day with mean situation so ever the one would negative and we're we've their rates a knows parts. say Europe I the week seeing basically stabilization got lot got that been seems of sitting close sell rates a Japan identified coming year. so and We half rate active and to particularly you've around try be very-very faced capital

possessed strength rise rate in are happened environment to periods the of favored are lower buildings office and class The markets assets high very mentioned; that other multi-family we're what in is office part buildings of most that Mary that quality in of asset low time leads jobs. growing suburban has this that the normal the interest that these tenants seeing

were transaction here was so trends, some major there And a that recently. closed major in Seattle there just

insurance estate pick sidelines you to capital higher company pension minimum generate $XXX comment the and need over they'll the, I by a people of you and have estimates willing They're had might think Seattle comments trying billion they out been part to on said assets purchased business I ones on home and to that higher as own. quality it's accept think ever in the my the I that I add every the get we done I think so largest investor Canadian so as got and to Mary risk-adjusted does that multi-family that by are got was lower where the income quality earlier gravitating fund of like need predictable more you've to sovereign other as other returns streams. to deal thing the real find a you've people's and a state too returns that sitting hope,

that that's you are what seeing? think I the So Mary overview of kind

Mary Ricks

I it's Yes. PRS for in markets if amount interesting a we're seen about multi-family the deals mean you the of deals trade that in think significant we've in in been Ireland operating example quarter.

XXX whether million of well-performing an and attractive. that and our just capital think what think to defensive of single that above up which looking a that very large insurance portfolio we talking in Bill U.S. is bid points office good asset a So abundance be for PRS about company I is very about € guy portfolio to deals really again And were price our portfolio and multi-family that and/or credit led our very classes. worthy own defensive I it extremely-extremely portfolio our whole Europe tenants with very

William McMorrow

add comment it any jurisdiction. going was unless on the one comment construction Mary's second we would on that activities by pause Anthony in mandated to governmental quarter very we decision a weren't made other local to I that conscious our of

year year, leasing now you're next front this those seeing getting in so new has space highly out in lot what the there good year to consumers being coming traction right seeing the on high which only and estate brand of so a of projects. at a were The have consumer almost properties Rosa Mary you're third for very the living open Santa been seeing investors very probably we for brand the in addition real releasing lease gate. also newer project in we're month following in and the interested multi-family we're the online and least a construction And on the new quality

Anthony Paolone

is well sounds is you capital But disposal on your side debt sounds like that lot and the pipeline at of investment your going Right. have and it it like a program strong.

wondering Just What's property been normal for most right historically. or be you asset investors a terms in whether interesting region about you just investments have opportunistic all of now type? it

William McMorrow

We between have now evaluating like in United crisis, down when starts interest low at there a you you the western when this what States fact but think markets during the that I several right it always seeing process actually will multi-family we properties slowed if opportunities by that start I equity we're lag we the borrowing dislocation think rates. and people really in you've is got back to the time that it's credit what further the happened and call call the

the what and hang the a or if to of for been have eventually So debt what's think the truism I before just Kennedy-Wilson so opportunities. the is what's opportunities opportunities really years. at up equity in is comments that coming system to throughout there It didn't started back show debt is purchases the comes the in first you trying the think couple time the which up attractive. our reserving out they work time is takes crisis real It the on part start real is banks cycle business generally my that can a XX, most point was to but they through I show But of longer. credit out when like will that

kind equity Our opportunities. of

Mary Ricks

where that developer add just terms we're from Europe is really in seeing trade. might led I of to opportunities

and/or where to due our I liquidity a to be So are hold to finance that where basically been a down be lack true, liquidity. for the that really so shut projects and the same banks those need say, fund is to would the there's for have in able funds retail either event able buy of in shut driven developers liquidity to opportunity debt and the would UK

open by those need who product at quite within retail but just with discussions for when created retail not portfolio So retail we're Again the few up in as a a retail in transactions. those a fund, investors looking of liquidity are.

William McMorrow

everywhere of you time the together have last right on whether comment virtually with it that relationship and platform. side a I The benefit very-very make in these Mary. over States big key United Europe relationships market years we're of as it's the that's to point lot States relationship management here so kind our the a the over I'd debt entire the built for the has people back a we've years transacted Kennedy-Wilson have you the with now every considered maybe system on built is that we so of good or and we've before that a ourselves in of the considered without team Tony that in that western to long is That's with or on Japan and relationship patting have call markets execute reliable major said I purchase periods tracking been and we're outreaching people and we're or and United counterparty a

them so of start don't you at And just this. these all up time things like a

have You in them place. to have

Mary Ricks

are We're the thrives. the on Bill disposition is very-very all now special special times these up The an their balance these assets very during of last head for sheet for do Bill described of teams as and event really so to and thing of major well anecdotally has talking talking dislocation. where been major will forming are U.S. every set they've times to banks about as KW there for basically banks the that provided were be large just who me teams all to of of assets bank once

Anthony Paolone

Any it's have just thoughts there then stimulus be diminution could Thank that housing and off? exposure here. any for One, and Okay. quicker you well burning you with multi-family on a ones lot really workforce two business. performed on if the of

William McMorrow

and Seattle is of you lower to many-many really you've with for to in We that Well markets kind I cities Boise, the these housing the like in correct going the they creation would mean the fastest been these a into markets Amazon of it want you, when of you cost slightly before one of at and obviously country call I'd companies would in and I tech got Yes. companies Kennedy-Wilson think it have Seattle; more in, Idaho markets has dynamic in so to a part one which rest workforce hallmarks and I large and the as look really driven rate. of I that get to same very we're investor a through growing was it younger and or in really Lake crowd up probably in need on we've but market the years. the partly a people XX Seattle also job you've so affordable market went cases don't the Microsoft, find quality I'd Salt and that got with nine big say income state on go by basis of the true shows the before smaller thing discovered so what doing life in in tax higher I City we're and was ago been say and eight same is years

collections we're high in for possess the in is but and in including individuals state just So are look I state rate picking of through. zero we've that on if of tax tech had people of so lot companies. at, rent they that high kind states quality the extremely in the Washington what but that that of and just just projects not Mountain you the here we the went these characteristics call work I'm California related and cases They're Seattle tech very a XX.X%

in where end the as they today here all we sit mean wait compromise we're that and a we but of up that with to is in next not, no but end bill we're collect and so material here see kind any we to our over to have not as projects we'll who to ball far there's great knows rents concerned the I up be days ability have just what few changes crystal that's going these stimulus going sensing As own.

Anthony Paolone

one and comment it rates and on market as on pre-COVID what's happened Okay to relates to just this to multi-family then multi-family last can the Dublin you rental date.

William McMorrow

Mary?

Mary Ricks

remained flat. far so mean they've I

in what it's provided PRS been as a space. or opened up about that to I professionally so institutional it's moving we nascent what tenants interesting and market very exist that's the even other Irish want next really KW we're days lot to, to think in the a his described Clancy double owners and you Bill I We that XX location and in is think a home think of see they over seeing budgeted might it quarters remember remarks. the some see demand are, X couple see might the as PRS wanting Quay building a so XX really to I up is didn't home ago years market think but to of trading professional ago you from really and offset had that's when that that multi-family amenitized, just people actually the and market are doing They that. managed you nice working about and because so do they're have tenants

up will term hold the well. So very-very we portfolio think our over long

seen rates. haven't degradation any We really in rental

Anthony Paolone

Great. for the time. Okay. Thanks

William McMorrow

Tony. Thanks

Mary Ricks

Tony. Thanks

Operator

question The be Johnston Bank. Deutsche next of from will Derrick

Derrick Johnston

program. looks and buybacks? prioritize Hi Was the would forward liquidity repurchase to describe consider priorities you Yes. share essentially this Good simply allocation It morning. capital resuming how you everybody. and paused the going like would you

William McMorrow

second into going quarter. decision conscious a was it the Well

key to was wanted makes parts companies have over parts maintain second pausing then one lot to our if in your sense, come else of leasable two space construction learned everybody you out In and communication quarter. our first on learned you're everybody or construction addition liquidity of their the construction when that healthy construction units our with it the keeping we've to is completing continue while office it. to our we the of a the with and the wanted the you the the staying then first because logical platform you're of properties We've paused years one that can be we

was the So the the, rationale on pausing when was we have that a I program real so share program. think big that the CapEx going on repurchase behind

Derrick Johnston

Okay. lot XQ remind the the rationale store pulling actually reflected a of XQ was it That sense outside? Shelbourne pool for for me how makes actually with in to it or in the think a the be about still and same in pool of you. maybe XQ? I and remain will out Thank reopen store same now

William McMorrow

Matt answer I'd you that. ask to

Matt Windisch

in would Yes. in shut. Sure. the to hotel was QX put We QX and it intend back

there mean I no So revenue. was

think we quarter but in that now be it's same sense any made So second didn't store it it will reopened. back include the for that to

Derrick Johnston

And obviously at forward? then large levels is capital going would envision Great. is for comfortable your fee managing record that lastly understanding management optimal you fund the with this a me part X.X business you How of What under assets be Okay. business the b. the partners?

William McMorrow

my a that same significantly that have have we've assuming together the it periods couple for ability have billion remarks X.X risk-adjusted the at we Well we repeating a calling years the in by find I'm people-wise. and now and that from company I now that team basically because here is almost to was ability infrastructure investments myself had the couple as the billion right long dollars same somewhat said mean good we ago people already what zero. have grow I'm I but of people to can platform up time with we we the take where of

but the want bandwidth that we we have it beyond bandwidth the take projection don't I give a So beyond have that. to, to to

Matt Windisch

we've I been the we've business We're under if just so as focus growing the to any it people Bill that adding utilizing the debt And platform can as some within people. far assets resources been we add KW on we've repurposed growing management. added existing people doing haven't and example we've debt the without for platform, within been

Derrick Johnston

Thank you points. everybody. Excellent

William McMorrow

Thanks.

Operator

McGrath Instructions] Sheila from next of Evercore. will come The [Operator question

Sheila McGrath

for far debt perspective pricing details just or the And you these the put you Yes. Is profile morning. here give have so of us on risk you opportunity opportunities wondering Good in also context? help banks was construction fund? because view the I how the new if could additional if into us could financing? on retreated and historic insight investments

William McMorrow

to handle want you Matt that.

Matt Windisch

we've Sheila opportunities past have seen finished been we so call transitional what over initial the months more a Yes. several the opportunities it's Sure. building. where

so properties up ready weren't the been more by lower provide property come longer-term, the rate or long-term construction a so product So coming we Fannie the from there finished to to an assume case and ownership be leased a traditional that projects and large any already interests in up lease financing completed, the couple the the markets due able take both we have to a multi-family we in help the haven't but loans in the where have and interest on construction insurance project taken assets owner get in loans multi-family of we've company we'd and or first Freddie been loan financing out ultimately in done lender.

so active this banks somewhat in And the space. were

of able has funds this there couple financing to space over do to have high far. gap active fees past we're high a that on these so assets as a step financing in and been in things, quality seeing the of feel the And properties we've investments. really allowing sponsors and been but and very we're Some provide months the well historically and how our we returns terms certainly in in very partners of so structuring and we're managing bit that's this been to solid type and so obviously debt these getting quality paid get of what

Sheila McGrath

and Great then. Okay.

William McMorrow

mean know because an Yes we're positioned class. and markets. I asset that thing comment we're Matt's a asset would Sheila as owner I kind would building we're basis in uniquely just I where in lender perspective We be also of those to a should add one you from

them things in of their but our costs skill should are their we people be. we're underwriting information so others utilizing company are these sets utilizing but investors values make awful carefully know So what lot an are to run we've and got sure and what business on-the-ground though great as the and that we're the his Kurt even Zach equity team construction multi-family that we under to

Sheila McGrath

how think during we the year? balance you And I or disposition do just you front certainly of what that front? pause Thanks the but funds, just Makes thinking how to sense. out your of it Bill. realizations some made for put on wondering of that the sense on are a expect about XQ should

William McMorrow

over have our Well multi-family, market I you going what know active and our in we're of asset value, the at low say I meaningful that a for a tell expectation call that where right right period market we're testing Seattle answer started are it forecast. with going I that Sheila times where I stay current can one and I fund to in number a of time to assets rates of today. advantage directly years, would out years, interest time whether that's an now of we program had assets sale we multi-family you five a many don't want years particularly now but the negative a time think. but testing I in to that we've others want when to It's entire XXXX not would extended of two extended call we're I sheet said I've this is time. we're balance is give of interest that in to be we period have right on give zero it's we mean them situation limited where see in larger we're to five at. to fund with in so and an for that Japan very in I going looking mean though get now but don't rates three you way really it are that's don't this all now but COVID people the as don't the period watched on

cap we going stay interest think rate low. be these long as that so there's meaningful rates compression to So

Sheila McGrath

Do up one I would than open Shelbourne Okay. slower what the lease be typical would the Ireland might last when pandemic? the might as Any at then And insights up one. given and it think you for for important your Thanks Bill also again that Quay? is to Clancy be outlook that U.S. imagine rebound? visitors

William McMorrow

Mary?

Mary Ricks

Sheila. Hey

great with of I on think green the the the government down that way in a country. have it Ireland countries has closed into situation are freely Ireland. list job containing They XX they've a COVID traveling where sort done just the there is

who you're this the it's at Irish be think travelers U.S. forward. folks that we've of will a and a looking for share. I the government I for and weeks travelers open for the market the a of think XX% only done important Shelburne going opened great Having and staycation is UK the seen couple capturing the I'm up looking situation at the Shelburne for of that right every said almost job since and month a really have great proud been hotel team demand

as Shelburne So sure. we list next the looks either of end opening government which at or see at we'll green economy for are of the an the that in the hopeful help the quarter will QX

Sheila McGrath

completed any you think. just indications think then that project that up far? do Okay just on I so how Quay was the lease and Clancy That's level the is interest or

William McMorrow

Right.

Mary Ricks

in of extremely third project the just It was project what It's all phase Ireland. the well. completed. of that, largest That is is going Yes.

We have doing per leases been double doing thought week. we be we'd up what leases at

actually Bill would even led now we'll where we're be and being we double led the be. we we thought with we all in XX% the since it So script finished at again talked XX% applications about

so just Great So goes product. that yes.

Sheila McGrath

that's Yes great.

Mary Ricks

product Well great proud with park, big on-site yes. It's very priced, next amenities, a it. a of a a park to super spacious gym asset. We're dog

Sheila McGrath

Thank Great. Okay. you.

William McMorrow

you. Thank

Mary Ricks

Thanks Sheila.

Operator

from with James of is Bank question next America Feldman Lynch. The Merrill

James Feldman

as more work start on get investment. thoughts like to putting wanted you. Thank Great. trajectory capital I opportunistic your just on to the you earnings growth

sounds you which more does then and just through tend debt it can as would but I from to we how the play that outset like accretive if cycles equity assume do about more you to maybe transition be out? that more some So immediately fades think

William McMorrow

sure completely not question. I understand I'm the

James Feldman

investments up about transition transition how Well investment more of for I debt into a yielding going lease if as assume component this more which be just longer this of to more to the talked play however then it, work should through in to right higher had term the we how years impact it and early if it and to your kind are of has equity kind just you probably is takes your takes like you teams think out the flow and initial banks of long the building equity debt over cash kind their about of to now investments? stages more

William McMorrow

I have here any, capital ask mean giving I'll mindset we've I Matt Well we're to in not, jump we second. a a not I'm work. to to had put mean that in never

say to a that the and to trying is stepping I start on. seeing is interested sense we're into the the this able enough people we that was that on, we platform. before going the there here going right find to to year we started we guess once and or I construction the have a about risk interested lend deploy have that amount it's evaluate and see our so in, nothing year build working had than adjusted We in the institutions that mean not. the or we're chunk What that them will next we doesn't opportunities opportunities of XX have best months it's look returns. they whether to teams that equity more to be money, August not necessarily never on build-out. buy remotely and you Kennedy-Wilson that of opportunities good a that do would then of more to and have produce Fairfax company this debt something amount be have find to over not financial have going make a an requires We've up to said we expectation it buying investment that is in next say everybody and fall land guest to We're

to So it's tell the come just early are equity it's opportunities too going from. to where

I for months. I up a focus mean guess. our is next to show So it's right we're I the if just build them. say platform this now ready here mean debt the X out not, XX to it's But opportunity over would

James Feldman

you And investments typical would you're say are on the at? what looking yields debt

William McMorrow

Matt. Yes.

Matt Windisch

with risk generally It fee % our structuring X in or digit the when our all things profile, our that's we been varies doing of coupon and unlevered. returns up take depending fees then depending to subordinate with etc. on including on to the and KW we're getting but neighborhood structure and X% the a whether leverage, double unlevered we've position the

William McMorrow

return get that I've have to thoughts that right point a couple was get XX% a you interest X% and been they right different it I money and out able that at interest if zero. shouldn't turn XXXX near interest beginning back zero earnings at the It XX% return go that are in to or talking might but think lending that's been of you've calls Right obviously or of around know might these XX% look prime the about to Matt you've We've banks the remember you that be on credit a that at you crisis I back were today lot if for rate at than fact be whatever got a different when that the you into some when to of your deal. rates you so mindful outsized rates were but returns got cycles years.

James Feldman

seeing space they're they before? thinking type tenant tenants kind from talked you you've do using plan I suburban; in they interest in of mid-rise about That's bigger just seen mean the do are you weren't How picture or side? about the using Okay. maybe just yet of couple space alphas with that Have it know I shifting helpful about Q&A what gears low that talked and then you but and to a change? times what

William McMorrow

Mary?

Mary Ricks

I at particularly ahead of mean person go office the the can interesting. tenants Google We We've so people in huge one office way looking Yes. more our where haven't space and senior that we as seen can a we point as a all our and seen to a from be technology change together some of it's and portfolio we we this we think like operations our really very a we that but but we collaborative. of own really haven't, to said really efficient building yes in users with from get they go we well to is are to and been said like tenants perhaps times. not that in centers, high-rise into see it's we've to very work tenants but reduce said building conversation are what company as work to commute what yes going a mean looking talk had home home these have we're already folks play I some city

looking open. model as we've I and people but and model we what spoke and there want that are play of well clean a systems. have can to the said definitely their talked modifications to make filtration environment, that single able where can financial make that Sometimes a in making hub towards for not push and of institutions it call would again so very to lot whatever they they're our already is own space occupied control on there's own a lot sure by portfolio open, are tenants they a the They

seeing some We to our have are go open from to wanting of more offices. plan tenants

doing. we're of what ahead definitely we're so And

we're world think indoor think more door-to-floor our commitment optimal really office and in ESG about. focused I which design our very our little spec than journeys, developments I think our we've about when you environmental way, quality, on is glad on positive a a contactless prevalent ever changed in which bit today's focused

William McMorrow

long say one working period will just a a Well would Mary I I opinion companies time. thing not over personal it's think of for remote succeed most

if whole human culture, to working of collaborate different in All of time going people very forced will time about year can have everybody and and that successfully period Everybody companies This in be there there ten to few account culture each a people together. trying create you're reasons start remotely. least was a big are to create was for was right going are my build other their culture is order to XXXX. with not work and own their create remotely five-year now it being together to certainly of ideas is or period you to like the and remotely just never collaborate at come in You whole a where you've have together your variety period have got that it up I've people it to your said a company whatever to time in to to of over myself we're execute and came human pass your it's opinion at plan. repeating with think because if I'm work but on to and to just beings cry as

very over working this I in period we're particular different or environment but they're what want go started. they've where think So when in, when than believe office I office be could ends an is that will to the been but people to before environment back knows going all this COVID in going who to it be in to

Mary Ricks

Agree.

James Feldman

help, more the timeline the can think opening just can Okay. Thanks pipelines? assets on allowing me talk for here up from then that your that. portfolio be thinking are and both get development of there some percentage thoughts those your things And you the I home out you leased total mean up? How think pre-lease about the two for last And the about of about of the just lease for pipeline, we certain up people before these they actually we and do working projects? need to

William McMorrow

have going we you're certificate puts is that of for well then, asset States we've a not that business leasing the Well and pre-leasing very-very occupancy a I marketing assets. and until waiting here got in both and that management plans together plans team extremely and the the you're in mean in you strong have Ireland doing multi-family can obviously United the any hear marketing these or you

Kildare XX side stream buildings or so get mid-size on on is what you of and on Hanover would the you coming third as XX office Santa and foot that's of for term range XX,XXX been on said this very which mean the pre-leasing Quay really a we Capital of on Street pre-leasing really remember Hanover a feet the apartments the and and just, done So area. are square XXX,XXX only open Clancy. dock with would in and and everything XX,XXX start be? each of it's dock. it square on start your sits leasing guess very, Quay into and Mary already where we're the you is right I both that the open XX% and the we've vibrant office key Rosa you call capital in days of and Hanover – I We're all completion anchor Dublin behind will what Mary office those near two finishing

Mary Ricks

out the of it's ground mean now we're coming I really there.

what XXXX is sticks Quay with to mentioned decisions. in any and before we've of up Those you and Kildare of So completion and floors making you kind tenants really pre-led are are need be Bill sort it Dublin seen Hanover rolling those dates. that

about on that what's we're I on say if XXX,XXX of XXXX X while in think in I subject. next Dublin that would we'd So would I just square you good think square expect When feet things Dublin ground big a ways towards away. a we sometime completing all Irish pre-led; still excited half Salesforce, very PRS the Amazon a the just feet year second million of completing a we're about by new portfolio but have I there's some see help in obviously is now visibility leasing. of we're expect mean our some year million the you which of to activity have thousand All announced on end Google, government, really out would next jobs the and everything pre-led coming but continue will about Dublin. side those to of names

William McMorrow

Yes.

within property their to get you the can months own you've if real active they point. I Mary towards so get and sign. of get from a tenant's think they is a I get it good end activity finished until a when having start actually lease perspective you mean six years the really deal think I any to looking nine mean kind that before making a couple got about really you of of you months

James Feldman

thoughts. your for Thanks Okay.

Mary Ricks

Thanks Jamie.

Operator

of come The Parsow Partners. question next from will Elkhorn Alan

Alan Parsow

at have that here Dublin. morning. up of originally you would or leasing the about guys new exceeds success in or platform what? the platform say rate same a been in talking With projects the your had what rate you you regard up seen apartment some Fairfax both at you Good Bill Kennedy-Wilson you've debt which ramping to anticipated

William McMorrow

Matt I mean the documents Well think good it's May. close point of we end I the until we actual everything a Alan. don't and

Matt Windisch

That's right.

William McMorrow

you on the one this start running getting but word the in anticipated understand accounting-wise And infrastructure that people out got while and do I faster course you would something of we that for so before of call done come team than you the Matt we're business of on it's that stream and name working two, like to business you've bit it's window people-wise were it open. a a there want the to his your things the mouth and deal and of have when get say I'll is make building

inside short good So to us all of in in very-very now. in got very only infrastructure of right opportunities that period company but we've the would the we pipeline not in say we've want built a I build of front time but a

Alan Parsow

That's I know. you. what wanted to Thank Okay.

Operator

this any like conference the session. to McMorrow And would closing back question-and-answer remarks. the I for concludes over William to turn

William McMorrow

your I'd good health quarter. the and thank you we'll in for for Well say and Thanks talk wish an listening in our today having your next very I all and families and all much. company you interest

Operator

now Thank you. for today's all presentation. attending Thank concluded. you conference has The

your Have day. You a now lines. great disconnect may

Daven Bhavsar	VP, IR
William McMorrow	Chairman & CEO
Mary Ricks	President & Director
Matt Windisch	EVP
Justin Enbody	CFO
Anthony Paolone	JPMorgan Chase & Co.
Sheila McGrath	Evercore ISI
James Feldman	Bank of America Merrill Lynch
Derrick Johnston	Deutsche Bank.
Alan Parsow	Elkhorn Partners

Kennedy-Wilson (KW) 9 Aug 202020 Q2 Earnings call transcript